New Program Underscores Commitment to Mid-Market

CINCINNATI, Sept. 28 /PRNewswire/ -- UGS Corp., a leading global provider of product lifecycle management (PLM) software and services, today announced a new Global Channel Program focused on deploying enterprise-level PLM to mid- size manufacturers through expanding its partner capacity by 50 percent by the end of 2006. In 2004, UGS' global channel generated approximately 20 percent of the company's total revenues.

UGS made the announcement at the 2005 Solid Edge User Summit and Executive Symposium, which began today and runs through Friday. Solid Edge(R) digital product development software is part of the UGS Velocity Series(TM) portfolio.

A key component of UGS' newly-announced mid-market strategy along with the new UGS Velocity Series portfolio (see separate releases issued today) is the company's new Global Channel program, designed to meet the needs of mid-size manufacturers who want to buy from locally recognized resellers that provide exceptional service. Partners in the new UGS channel program can sell UGS' entire suite of products, including portfolios like the UGS Velocity Series as well as individual products like NX(TM) software and the new breakthrough cPDM product -- Teamcenter(R) Express. Mid-market product portfolios like UGS Velocity Series help resellers provide solutions that are easy to buy, install, deploy, use and support. Teamcenter Express, the core of the portfolio, has been designed to manage data from UGS and competing CAD design tools. Given this, the UGS Global Channel Program is designed to support resellers that couple Teamcenter Express with NX and Solid Edge from UGS, as well as provide the opportunity for resellers of other CAx solutions (AutoCAD, Inventor, CATIA, Pro/Engineer, etc.) to offer leading PLM solutions to their customers.

"UGS is the only company that offers an integrated portfolio of PLM solutions, from mid-range through high-end, completely scalable, integrated, and managed by a single cPDM solution," said Kerry Grimes, vice president, Mid-Market and Global Channel Sales, UGS. "Our 300 UGS channel partners are differentiated from every other partner in the PLM marketplace today. They have more flexibility and are better positioned to meet the needs of mid-size manufacturers. Our partners now have access to our complete integrated portfolio of solutions to better serve this market."

Thought Leadership in Mid-market

"UGS is clearly displaying thought leadership as they expand their current channel program into a value-based, global program," said Monica Schnitger, senior vice president, Market Analysis, Daratech Inc. "UGS is the first company we're aware of to allow non-exclusivity for their reseller channel. They are obviously listening to partners and responding to their needs. The new UGS Velocity Series portfolio was created to meet the needs of mid-sized manufacturers and the global channel program will be attractive to resellers who expect program elements that allow for additional benefits at higher levels. Teamcenter Express is the pivotal product within the new solution and the key to recruiting additional partners; it allows VARs to join the UGS Global Partner program while still representing multiple CAD products, thus not linking themselves to one vendor."

"Under its new sales leadership, UGS is making solid progress in formalizing a strong indirect channel and mid-market strategy," said Ulrich Herter, CEO, INCAT. "We have seen UGS aggressively pursue new concepts in partnering. We believe that these UGS initiatives will allow companies like INCAT to innovate and expand their efforts with an eye toward the UGS product suite."

Leveraging Channel Strength

UGS did extensive research with existing partners and industry channel leaders to design its new channel program. Based on this feedback, the new program is one global, integrated, multi-level, value-based channel program that replaces existing regional and product specific programs. UGS will measure and award value points in five key areas: sales growth, business process, training and certification, customer satisfaction, and marketing alignment. Partners will receive additional product discounts or commission, market development funds and rebates based upon the level attained. The program will provide certification and training on all UGS(R) products to assist partners in establishing expertise in new technologies, deliver service excellence and attracting new business.

"This new program helps UGS and our partners better serve the market with one scalable structure," said Grimes. "We are looking for quality, not quantity, and will reward partners based on their viability, capability and commitment to growing the business. For the first time, UGS is offering certified resellers exclusivity when dealing with customers of a certain size."

About UGS

UGS is a leading global provider of product lifecycle management (PLM) software and services with nearly 4 million licensed seats and 46,000 customers worldwide. Headquartered in Plano, Texas, UGS' vision is to enable a world where organizations and their partners collaborate through global innovation networks to deliver world-class products and services while leveraging UGS' open enterprise solutions, fulfilling the mission of enabling them to transform their process of innovation. For more information on UGS products and services, visit
http://www.ugs.com .

Note: UGS, Teamcenter, NX, Solid Edge, Velocity Series and Transforming the process of innovation are trademarks or registered trademarks of UGS Corp. or its subsidiaries in the United States and in other countries. All other trademarks, registered trademarks or service marks belong to their respective holders.

The statements in this news release that are not historical statements, including statements regarding expected benefits of the channel program and the new products, adoption by customers of the new products, adoption by channel partners of the new program, continued innovation and other statements identified by forward looking terms such as "may," "will," "expect," "plan," "anticipate" or "project," are forward-looking statements. These statements are subject to numerous risks and uncertainties which could cause actual results to differ materially from such statements, including, among others, risks relating to developments in the PLM industry, competition, failure to innovate and intellectual property. UGS has included a discussion of these and other pertinent risk factors in its registration statement on Form S-4 most recently filed with the SEC. UGS disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.